"The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge." - Stephen Hawking
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Got to the markets very late today... caught only the last 15 minutes. So, I took a paper-trade on SKF just for fun. Picked up some (fake)gas money.
I included the ARO chart as a continuation of yeterday's "What's Familiar" theme. At 12:45-12:50pm, two dojis in a row on low volume coupled with a cross of the 17 EMA by the 7 EMA. A short trade at this point would never have reached above the entry price of $41.02. Trend continued into EOD and would have yielded up to 84 cents of gain. Price never closed above the 17 EMA throughout the downtrend. And the low point of the trend? A doji at 3:45pm. After the doji... reversal of the trend.
Hey Blue, you rarely have a down day, even if it's just a small gain. Have you thought of abandoning the paper account?
ReplyDeleteMy July 23rd results will show you why I don't believe I am ready for live-trading. I am all too aware of my weaknesses and how far I have to go...
ReplyDeleteBCT - Keep working at it and don't be in a hurry. The more time you put it, the more things will start to make sense to you. Knowing your weaknesses is the first step on the way to improvement.
ReplyDeleteYeah, Scott. Just plugging away... thanks for the encouragement... I am committed to learning this and I have a long-term view. A year or two, maybe three of study and practice will seem like a drop in the bucket, considering that I have over twenty years until standard retirement. And who says retirement is what I'll want? Just prop my rotting carcass up in front of the computer and I'll buy and sell...
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And in case I haven't mentioned it lately, thanks for your continued efforts at FNG. It's first class. After reading and re-reading Deel's book, I'm going back for a third time through all your old charts from the beginning.